Court rules in favour of CBS takeover of Ten Network
Ten Network shareholder, Yunfeng Du, was left silent as the judge asked for his next move. He's one of three small shareholders involved in the David v Goliath challenge against CBS taking over the third-ranked television network.
The Australian Financial Review reports, Mr Du was asked by Justice Ashley Black of the NSW Supreme Court if he was satisfied by an offer to delay the final transfer of Ten shares to CBS to give him time to decide if he wanted to proceed with legal action.
In reply, the final year Juris Doctor student at Macquarie University, who claims to own 34,000 shares, lost his voice as an awkward hush fell over the courtroom.
At which point, Justice Black said: "Time has passed. Could I be clear about something? This should give you time to think about it. You are not being asked to make a final decision."
As it stands, the three investors considering an appeal, Mr Du, David Gubbay and Chun Leung, have until 1pm on Tuesday to let KordaMentha know if they will be seeking an injunction.
Barring an appeal — which could make the trio liable for damages — the US giant’s $41 million takeover of the Ten Network will be made official after shares are transferred from 5pm that day.
It is understood Mark Korda told Mr Du that damages could be as high as $50 million.
Justice Black said many Australians may be disappointed Ten was being sold overseas but that was not a legal reason to block the sale. Adding, there was "no prejudice or unfair prejudice arising" from the transfer of shares.
KordaMentha, which expects the three shareholders to finally back down, is thrilled with the result.
"We want to take Channel Ten out of administration and give it a great future so there could be damages but I am sure we will get it settled and it will be fine," Mr Korda told reporters.
"Ninety-five per cent of creditors had received all their money back, including all the employees, contractors and television production companies… This is a very successful outcome."